Press and daily Dakotaian. (Yankton, Dakota Territory [S.D.]) 1880-1889, 1887-11-10
The BUSINESS SITUATION.

iHE BUSINESS SITUATION.
The Trend of Commercial Activity and
the General RAILROAD Situation.
Chicago Tribune, z; The course OF
business and speculation is disapppint.
ment to old traders who have been &C.
customed in the past years to long peri.
DDS OF activity and increase followed by
as long or longer periods of dnllness ard
decline. We have had all sorts of bust.
ness weather this year, In 1878 and
| 1879 to be long on stocks with even
moderate degree of Judgment was TO
make money. In 1884 and the first half
of 1885 to sell short with an equal de-
gree of Judgment was to win profits,
That As, during those periods the drift
OF affairs was all one way, the reactions
being incidental and temporary. But
Tor the last twelve months we have had
| both kinds OF markets. About year
ago the stock market was booming
Then came the December collapse
Alter that another bull speculation came
on, which was followed by the decline of
last June, 1t has been q prosperous
year in legitimate business, but nor o
profitable year for the bulls OF the stock
market. OF late the bears have been
suffering, and their mistake is due
largely TO the idee that one III these pro-
tracted periods of decline had set In;
making it soie for them to sell as many
stocks as they chose. But the old tests
do not work very well. There will IN
questionably by some large shrinkagee
IN the values OF land and securities in
the next two years; but such are the
wealth and vitality OF the country, go
low are the prices OF most commodities,
| and so great are the sccessions of capi.
tai and population we are getting from
the old world that we cannoJ expect
steady downward movement IN securities.
it.is therefore very unsafe for small
operators to follow the lead of those
Ispeculators in New York who are CON
stantly sending out "celnmity dis
patches" There are now plea,y OF men
tied up on the ehort side OF the market
who find it muohseaeier to revise their
opinions as TO the financial situation
| thnn to get their money back.
The area OF danger Rs far rs stocks are
concerned is the west, The trunk lines
have gone through their period OF iiqai.
datiob, end are apparently in pretty
sound condition. The coal roads are
doing remarkably well. and are more
likely to increase than reduce dividends.
The New England lines, largely through
| a closer state supervision, but also be-
| cause the motive for bIildIng new roads
| IN that part'of the country is Compare
! tIyely small, have been steadily getting
| into stronger position. 1t lis the west
ern roads which have been built far
beyond population and trade that will
| constitute the disturbing element. The
| recent great decrease in the earnings OF
the Ohicsgo, Burlington and Quincy is
| not cheering thing, and it is just what
Is likely to befall every other road in the
| northwest in consequence of recent
paralieling and extension. The new
| schemes OF the Atchison are evidence of
great enterprife on the part OF the man
agement, but the com pany has exposed
iiself to many serious dangers, and the
| attitude of Jay Gould toward the south
western roads, as indicated by the decline
in Missouri Pacifc--once special
favorite with him--is not reassuring.
| OF course the condition OF the money
| market is q very important element in
| the business situation, bat both stocks
and merchandise have moved in defiance
OF ii at times recently. Stocks have de-
clined when money has become easy
anu mercantile business hsB been active
when it was close. The New York bank
statements are less significant than they
used to be. The Chicago money mar
ket has been messurabiy independent OF
them. OF late our market has been
strong when the New York wes weaken
ing. The New York Statement took the
people by surprise Saturday by showing
decrease in the surplus reserve of over
| S2, 0O0,000. Yet there is no reason for
expecting stringency. The recent scare
has entirely passed away, there will be
no extraordinary demands during the
remainder of the year, and the European
banks are III aush condition that they
| can afford to be liberal
The characteristics of mercantile trade
have not changed much. The dstrlbu-
| sions of staple goods is large and coiiec-
tion fair. Railroad iron is in smaller de-
mand and prices weak, but for structural
| and miscellaneous goods the orders are
large. The hos been sharp advance in
copper and Yin which is immediately
due to manipulation. Failures are more
| numerous than last year at this time
the increase being mainly in the west
and south and here and there bank of
some Importance appears in the list.
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